Students with their NSFAS bank accounts. Image: X/@mynsfas.
NSFAS to terminate contracts of eZaga and other service providers
NSFAS beneficiaries nationwide have brought institutions to a standstill by protesting against eZaga and its exorbitant charges.
Students with their NSFAS bank accounts. Image: X/@mynsfas.
National Students Financial Aid Scheme (NSFAS) Board chairperson Ernest Khosa has confirmed that contracts awarded to eZaga and other service providers for the direct payment system will be terminated.
Khosa revealed this during a media briefing on Wednesday, 18 October to publicly release the outcome of the investigations into allegations on the appointment of the direct payment service providers.
NSFAS TO TERMINATE EZAGA CONTRACT
Earlier this year, the Organisation Undoing Tax Abuse (OUTA) released its report on the NSFAS direct payment tender and relationship between NSFAS CEO Andile Nongogo.
Werksmans Attorneys and Advocate Tembeka Ngcukaitobi were then appointed to conduct an investigation into the allegations of irregularities relating to Bid NO. SCMN022/2021.
Notably, following the introduction of the new payment system, students across the country were up in arms as scores could not access their funds and many complained about the exorbitant charges for transactions.
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During the briefing, NSFAS Board chairperson Khosa revealed that the report established that Nongogo actively participated in the presentation to the Bid Evaluation Committee (BEC) of proposals by service providers.
Khosa said that this is a material violation of the public procurement processes of NSFAS, which he was employed to safeguard and uphold. Furthermore, the report revealed that there was a conflict of interest in the appointment of the four fin-tech service providers.
“According to the report, there is a possible relationship between Mr Nongogo and Coinvest and eZaga Holdings,” he said.
ALSO READ: Nzimande defends NSFAS payment system
As a result of the findings, Khosa said the Board has therefore decided to do the following:
- Write to the CEO, Andile Nongogo, and give him an opportunity to advise on why his contract should not be terminated.
- Subject all Staff members associated with wrongdoing, as mentioned in the report, to a disciplinary inquiry.
- Advise all four (4) direct payment service providers that their contracts will be terminated. The Board will ensure that this termination does not affect the students negatively. In this regard, the Board is mindful of the universities they have made and the expectations they had over the next step and will consider both the law and the implications to service delivery.
- Review the SCM Policy in line with the National Treasury Regulations and Policies, including the PFMA.
